This listing includes AI condition scoring, neighbourhood intelligence, and market valuation data — giving you a complete picture before you visit. Compare rental yield, price per square metre, and location strength against the broader Portuguese market to assess whether this property fits your investment strategy.
2-bedroom, 2-bathroom house of 145 m², built in 2004. Located Palmela parish, Palmela municipality, Setúbal district. Highlight: This property features panoramic views of Lisbon and the historic castle, enhancing its charm and making it a unique investment opportunity in the heart of Palmela.
The valuation. The asking price of €450,000 is significantly higher than the fair value of €233,584, representing an overvaluation of €216,416 (48.1%). This renders the property overpriced based on current market conditions. Buy-to-flip angle. Given its high-quality finishes and desired location, a buy-to-flip strategy could be employed, targeting resale to profit from market demand. However, the significant markup poses risks to achieving profitable margins. Buy-to-let angle. The rental income potential is around €1,088/month, yielding approximately 2.9%. This suggests a long-term hold strategy may generate stable cash flow, although the low gross yield indicates limited investment effectiveness.
Fair value modelled at €233,584 from the area baseline, adjusted for condition and location. Asking €450,000 sits €216,416 (48.1%) above — overpriced versus fair value.
Asking €450,000 versus the Palmela, Palmela, Setúbal area baseline of €230,260 (€1,588/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 76 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 45/100 (Housing Market 35 · Amenities 40 · Economic 35 · Tenant Quality 55). Softer demand indicators apply a discount to baseline.
Palmela, Palmela, Setúbal
Area baseline €230,260 + condition +€7,930 + location -€4,605 = modelled fair value of €233,584 (€1,611/m²), a €216,416 (48.1%) gap versus the €450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Palmela · 6fba18 | Subject | €450,000 | €3,103 | — | 76 | 45 |
| Palmela · 2620d6 | Active | €205,000 | €3,942 | 27.0% | — | 47 |
| Palmela · 49b8b8 | Active | €365,000 | €3,842 | 23.8% | 76 | 52 |
| Palmela · 25f681 | Active | €550,000 | €4,583 | 47.7% | 80 | 45 |
| rua Fernando Namora, 9 | Active | €1,200,000 | €6,417 | 106.8% | 80 | 48 |
| Median comp | €457,500 | €4,263 | 37.3% | 80 | 48 |
Long-term rental The investment potential for a long-term rental strategy is diminished given the property's 2.9% gross yield, which falls well below market expectations. Additionally, the significant gap of 48.1% above fair value suggests that investors may struggle to achieve satisfactory returns in this rural location with limited economic activity. Family rental A family rental strategy appears less favorable due to the high asking price of €450,000 that is considerably above the fair value of €233,584. With a neighborhood rating of only 45/100, this property may not attract families looking for quality living and amenities. Buy-and-hold Although buy-and-hold strategies typically look for long-term appreciation, this property is not positioned well as it is overpriced by 48.1%. With a fair value of €233,584, investors may face challenges with future appreciation and capital growth in such a rural market context. Not ideal for Due to its pricing and location qualities, the property is deemed unsuitable for student housing, the luxury market, and short-term vacation rentals, as these segments require stronger economic drivers and amenities than the area can provide.
High Economic Risk The property's low economic stability score of 35/100 indicates a high risk for potential fluctuations in income due to the local economy's instability.
